https://www.taxtmi.com/caselaws?id=769350 The HC allowed the assessee's appeal, setting aside the disallowance of expenses amounting to INR 49,48,880/- under section 37(1) of the Income Tax Act. The court found the disallowance arbitrary, as GST non-registration of vendors is not a valid ground for expense rejection. The HC held that expenses supported by genuine invoices, bank payments, and TDS compliance cannot be disallowed on technical grounds, and the department failed to prove the expenses were fictitious. Consequently, penalty and interest proceedings were also quashed. en-us Tue, 22 Apr 2025 00:00:00 +0530 Thu, 24 Apr 2025 09:13:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769350 The HC allowed the assessee's appeal, setting aside the disallowance of expenses amounting to INR 49,48,880/- under section 37(1) of the Income Tax Act. The court found the disallowance arbitrary, as GST non-registration of vendors is not a valid ground for expense rejection. The HC held that expenses supported by genuine invoices, bank payments, and TDS compliance cannot be disallowed on technical grounds, and the department failed to prove the expenses were fictitious. Consequently, penalty and interest proceedings were also quashed. Case-Laws Income Tax Tue, 22 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769350